I use dynamic content in order to localize all strings on the CSAT, but specifically with the drop down options, those show the placeholder instead of the value. Is this a bug? If it isn't a bug, can this be changed to show the value instead of the placeholder?

Upon checking, the usage of dynamic content on the customizable CSAT experience (EAP) is still a limitation which explains the issue you are seeing. The team now has ownership of this are planning to try and address some of the issues when they can.